The following contains information from the records of the Wellborn Engineers and Architects.
Wellborn Engineers and Architects
Selected financial information
31 December 2017
$$\begin{array} { | l | l | }
\hline \text { Current assets } & \$ 77000 \
\hline \text { Current liabilities } & 47000 \
\hline \text { Non-current assets } & 9 8000 \
\hline \text { Non-current liabilities } & 63000 \
\hline \text { Total revenues } & 53000 \
\hline \text { Total expenses } & 33000 \
\hline
\end{array}$$
What is the debt ratio?
A) 3.84
B) 1.63
C) 0.63
D) 1.67

Question

The following contains information from the records of the Wellborn Engineers and Architects.
Wellborn Engineers and Architects
Selected financial information
31 December 2017
$$\begin{array} { | l | l | } 
\hline \text { Current assets } & \$ 77000 \
\hline \text { Current liabilities } & 47000 \
\hline \text { Non-current assets } & 9 8000 \
\hline \text { Non-current liabilities } & 63000 \
\hline \text { Total revenues } & 53000 \
\hline \text { Total expenses } & 33000 \
\hline
\end{array}$$
What is the debt ratio?
A) 3.84
B) 1.63
C) 0.63
D) 1.67

Quizplus · Accepted Answer

The debt ratio is calculated by dividing total liabilities by total assets. 
Total liabilities = 690,000 
Total assets = 1,100,000 
Debt ratio = 690,000/1,100,000 
Debt ratio = 0.63 
Therefore, the answer is C.

The Following Contains Information from the Records of the Wellborn